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183392162
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Memorandum of Telephone Conversation with Secretary of State Dean Acheson and Secretary of Agriculture Charles Brannan
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183392162
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Memorandum of Telephone Conversation with Secretary of State Dean Acheson and Secretary of Agriculture Charles Brannan
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Dean Acheson Papers
Secretary of State Files
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1950-07-24
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7
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1950
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DECLASSIFIED
CONFIDENTIAL
E. O. 11652, Sec. 3(E) and 5(D) or (E)
447
Dept. of State letter, Aug 29 1973 3-66-26
ARCHIVES "NATIONAL RECORDS AND
By NLT- HC NARS Date 6.14.76
198
July 24,1950
Memorandum of Telephone Conversation
Secretary Acheson
Secretary Brannan
Secretary Brannan telephoned this morning to discuss with
the Secretary the matter of arranging for Iridia to purchase grain
at a price lower than US market price. He said he had talked
with Mr. Webb and later with Mr. McGhee about the problem.
Secretary Brannan said that Commodity Credit Corporation
owns enough grain, bought at $2.30 a bushel, and under the law
Commodity Credit could sell to India for $1.40 (the price they
have indicated they are willing to pay) and take the loss. However,
if this is done the grain dealers in this country will make strong
protests and it might prove to be very embarrassing since they
have refused to sell the same grain to a grain dealer at $1.85.
Secretary Brannan said if it is consideeed of great enough impor-
tance in the interest of our foreign relations to sell to India on
a concession basis, he is willing to go along with it and fully
support it, but he feels that either he or he and Secretary Acheson
together should discuss it with the President and the decision
should be made at a. high level before orders are issued to
Commodity Credit.
He added that justification would have to be made on the
Hill on the basis of implementation of international objectives
because they have to justify the impairment of Commodity Credit
funds. He said there will be criticism on the basis of supplement-
ing ECA appropriations.
Secretary Acheson told Secretary Brannan that the possibility
of repition would have to be considered also, which would have an
important bearing on the decision. He said he would like to look
into the matter and call Secretary Brannan later.
L. D. B.
S:DHM
CONFICENTIAL